Dexia wants to continue to grow in its two trades: the financing of local communities and the universal bank. This is the message that said yesterday Axel Miller, President of the Executive Committee of the French-Belgian Banking Group since January 1, presentation of the strategic plan of Dexia in the years to come. It is therefore for the new strong man of this original group born ten years of the merger of credit Local de France and the credit Communal Belgian register in the continuity of his predecessor, Pierre Richard, became President of the Board of Directors.
The new direction not least concrete results on its development and its profitability expected. Worn by only organic growth, both the net benefit that net earnings per share should grow an average of 10 per year between 2005 and 2009, prognostic management. Priority is also to improve profitability, by passing the coefficient of operation of 56.5 to 52 in 2009, due to a reduction of the costs of the Bank of detail for the most part. Already, a savings program, which is expected to produce up to 100 million euros by 2009, was set up. Suddenly, the profitability of own funds must be maintained above 16.
Enlargement of the boundaries
In the financing of local communities, where the Bank is among the world leaders, its objective is to pursue a strategy of expansion which proved to be charged up to today. Very present in the United States and Western Europe, Dexia has foothold in the Japan, the largest world market, the Canada and the Mexico. And to open offices in China and India. Result: the historical markets, the France and the Belgium, which are currently generating about half of the results of this activity, should no longer to represent only a third in five years.
In the Universal Bank, also, the time is enlargement of the historical borders. In this activity, which includes retail banking, private banking and the Bank for SMEs, Dexia is now essentially located in the Luxembourg, France and especially Belgium. In this country, it occupies second place in retail banking. The acquisition in June of the sixth Turkish Bank, Denizbank, for EUR 2.5 billion, reflects this desire to move towards new horizons. It allows to take foot on this promising emerging market. One of the priorities of Axel Miller will now be to exploit the potential of Denizbank, whose contribution to the net result of the universal bank is expected to increase from 11 to 20 in 2009. At the same time, with 100 billion euros under management today, Dexia intends to become a major player in the management of assets on the Continent.
External growth: Watch
To the development of its two pillars, the group is willing also to resort to external growth. Other "small to medium-sized acquisitions", comparable to Denizbank, are envisaged. "We do exclude nor a larger acquisition if the opportunity presents itself", said Axel Miller. At a time where the concentration is accelerating in the Bank in Europe, on a background of merger of Sanpaolo IMI and Banca Intesa, Dexia, which had considered merging with Sanpaolo IMI two years ago, is on the lookout. "We look at all, while remaining masters of our destiny." "Did we not need an external growth operation to continue to grow", was however pointed out Axel Miller.
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